US equities have seen a distinct opening reversal, with the SPX swinging from 3981… just 3pts shy of the daily 200MA. Gold printed $1906, helped with the USD -0.4% at 102.48.
sp’60min
VIX’60min
Summary
re: CPI… inflation is certainly cooling back, but 6.5% remains ‘elevated’, and many items are clearly >10%, with the consumer increasingly struggling with each and every month.
As for equities, the opening reversal is kinda interesting, with s/t momentum due to turn negative, which should be a pressure into at least 11am. I don’t see it meriting ANY bearish hysteria, not least ahead of a long weekend.
VIX is offering the equity bears…. nothing, having fully filled legacy gap.
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notable stock: TSLA
Lower with the main market.
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notable retail: AMZN
The bolder bulls will be seeking green gap.
Whether that equates top SPX >4030 (a massive resistance level).
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notable steel: CLF
Morgan Stanley, equal-weight>overweight, 13.60>26.00
I like Cleveland, and whilst it is s/t bullish (next resistance 24/25s), I can’t be buying it back, whilst the main market is still m/t broken.
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notable semicon: TSM
Earnings were excellent, and the stock is justly higher.